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How to earn money: 17 typical eBusiness Models

eBusiness Models

SYcommerce approaches eBusiness consultancy in a structured way, using a eBusiness model. A business model tries to translate the more or less informal relations within organisations into building blocks and the relations between building blocks. At SYcommerce we use the eBusiness model developed by Alexander Osterwalder. The building blocks allow us to solve the problems of organisations in a way that is both effective and result-oriented:

Template for the design of a eBusiness model: nine building blocks and their mutual relations (Osterwalder 2004)

17 typical eBusiness Models (Turban, King & Lang, 2009):

  1. Online direct marketing: selling products and services online
  2. Electronic tendering systems for procurement: large organizational buyers, private or public, usually make large-volume or large-value purchases through a tendering bidding system, also known as a reverse auction.
  3. Name your own price: this eBusiness model allows buyers to set the price they are willing to pay for a specific product or service.
  4. Find the best price: a customer specifies a need and then an intermediate company, matches the customers’s needs against a database, locates the lowest price, and submits it to the customer.
  5. Affiliate marketing: a marketing partner refers consumers to a selling company’s website.
  6. Viral marketing or rather social media: increasing brand awareness by using word of mouth. World Wide Rave
  7. Group purchasing: demand aggregation, aggregating small orders to attain a large quantity, and then negotiates for the best deal.
  8. Online auctions: online shoppers make consecutive bids for various goods and services, and the highest bidders get the items auctioned (eBay).
  9. Product customization and service personalization: the ability to quickly configure customized products online for consumers at costs not much higher then their noncustomized counterparts (Nike).
  10. Electronic marketplaces and exchanges.
  11. Information brokers: they provide privacy, trust, matching, search, content and other services. Froogle
  12. Bartering: companies use bartering to exchange surpluses they do not need for things they do need.
  13. Value-chain integrators: this model offers services that aggregate information rich products into a more complete package for customers, thus adding value (Carpoint).
  14. Value-chain service providers: these providers specialize in a supply chain function such as logistics or payments (PayPal).
  15. Supply chain improvers: one of the major contributions of eBusiness is in the creation of new models that change or improve supply chain management. Most interesting is the conversion of a linear supply chain, which can be slow, expensive, and error prone into a hub.
  16. Social networks communities, and blogging.
  17. Negotiation: eBusiness offers negotiation capabilities between individuals or between companies. Negotiations can be facilitated by intelligent agents.